Stock advisor trying to defraud me.

Question

Hey guys,

I have browsed this part of the forum several times but never added any input. Many of you guys are clearly more astute investors that I. I have a very interesting tale to tell.

A guy I know through a friend is trying to con me. I am 100% sure of it. He has a good story and seems to know a lot about the market. I may not be the most savvy investor in the market but I am not naive to the realities of the world. This deal is too good to be true and I am being hustled. Don't worry guys no personal info of mine and of course no $$ is going to be put anywhere these people would be able to access.

The short version is these guys have friends who beat the market daily via day trading. The top guy will trade for me my money if I give his friends a 7.5% commission on profit. Here is the rub.

The trader who is a stock broker will GUARANTEE MY PRINCIPAL AGAINST ANY LOSS. I have a few questions but will ask them later.

The angle could be one of a few things. The first being my money gets into an acct they have access too and it just us gone and so are they in an instant. This is most likely.

The other very real possibility is they basically just "take a shot " with my money. Meaning the guy does in theory guarantee my losses in a contract but in reality his net worth is 1/50th of mine so the contract will not be worth the paper its written on. Then they make real risky trades either hitting it big and making a tidy sum or they just lose me my $$$ and I have a debt I can never really collect.

Here is my question.........

Can a stockbroker guarantee you your principal investment will not be lost? This man has guaranteed any money lost in trading will be refunded to me the next trading day.

I know there are other details but I am really interested in finding out if this type of guarantee is even legal and if it is not what laws have been broken?

Thanks for any help guys.

JohnnyY83 · Answer

Hey guys,

I have browsed this part of the forum several times but never added any input. Many of you guys are clearly more astute investors that I. I have a very interesting tale to tell.

A guy I know through a friend is trying to con me. I am 100% sure of it. He has a good story and seems to know a lot about the market. I may not be the most savvy investor in the market but I am not naive to the realities of the world. This deal is too good to be true and I am being hustled. Don't worry guys no personal info of mine and of course no $$ is going to be put anywhere these people would be able to access.

The short version is these guys have friends who beat the market daily via day trading. The top guy will trade for me my money if I give his friends a 7.5% commission on profit. Here is the rub.

The trader who is a stock broker will GUARANTEE MY PRINCIPAL AGAINST ANY LOSS. I have a few questions but will ask them later.

The angle could be one of a few things. The first being my money gets into an acct they have access too and it just us gone and so are they in an instant. This is most likely.

The other very real possibility is they basically just "take a shot " with my money. Meaning the guy does in theory guarantee my losses in a contract but in reality his net worth is 1/50th of mine so the contract will not be worth the paper its written on. Then they make real risky trades either hitting it big and making a tidy sum or they just lose me my $$$ and I have a debt I can never really collect.

Here is my question.........

Can a stockbroker guarantee you your principal investment will not be lost? This man has guaranteed any money lost in trading will be refunded to me the next trading day.

I know there are other details but I am really interested in finding out if this type of guarantee is even legal and if it is not what laws have been broken?

Thanks for any help guys.

wallstreetcappers · Answer

The answer is YES he can guarantee principal.

The question is how will you force him to perform if he starts losing?

I hope you understand the point I am trying to make here..what someone can claim or promise is not the issue, it is how can you make the person honor the claim?

Not a good idea if you ask me..and the 7.5% vig is VERY high..

bucknuts · Answer

Do you invest for yourself at all?Have you ever looked at stock charts b4?Do you have any exp trading at all?

I think you should invest your own $$$...take a look at forex demo accounts are free and they trade real time with current market..i wouldnt consider myself any kind of expert but ive been able to trade and make pretty good $$$ on a regular basis..

Take a look at our forex threads any question and Wall,myself or anybody in the thread would be happy to help you out..dont think this is something that you cant do,take a look open a practice account and come make $$$ with us...it can be done..

JohnnyY83 · Answer

Wallstreet,

I appreciate the info. I was not even sure it was legal to make such a guarantee. The inability to collect is what I thought could be an issue. A judgement that is not worth the paper it is written on is no solace at all. The middle man told me 5-10 % is standard.

Buck,

I do very little investing in the market. Liquidity in my business is never a problem so this person wanted to utilize my cash to benefit us both. It just seems to good to be true. I would NEVER do it, I just want to nail these bastards if they are criminals. To answer your more technical questions the answer is no. Stock charts b4 is a term I am unfamiliar with. I will check out your forex threads later today and start checking them regularly.

Buck, wall, thanks very much for the info. Have a great day.

Today I will be "investing" for about 2 minutes in a business based in louisville kentucky

Tons of volatility there!!

Rush51 · Answer

This is the same mantra that pyramid schemes always use with folks...and we all know how those work out for the "investors".

In other words, Any guarantee of principal is your RED Flag that something is not right !!

You should steer clear of this entirely.

JohnnyY83 · Answer

Rush, I agree 100%. Like I said I am not a savvy market guy, but I realize people you barely know don&#x27;t give you the keys to the kingdom. I know there is an angle here the question is what is it?The primary reason I did not end the first discussion with a "not interested thank you" is our  mutual friend.  Like I said earlier I KNOW it is a scam.  The biggest question for me is whether the middle man is part of it or if he is also being duped. He seems like a real genuine guy but of course that could be an act. If he is an unwitting dupe in this I want to know. Most important is if he is part of the problem I want to warn our mutual friend. Our mutual friend is a girl who is not nearly as street smart as I am. She is young (30&#x27;s) and just inherited a lovely home and some cash, probably 1.5 -2.5 mil total. If this guy is scum she needs to be warned because she could end up  a deer in headlights if this guy is a bad citizen.Like I said earlier I am not a savvy wall street  guy but I am not naive to the world, she unfortunately is.Again guys, thanks really

pjrez · Answer

Stock charts b4He meant have you ever checked out stock charts......before

JohnnyY83 · Answer

Got ya. I have checked out charts. I know some about the market but as I said before I am no expert. Thanks for the help

JohnnyY83 · Answer

One more question guys, I have a few names of the parties involved. Where can I get info regarding who they are, what licenses they hold and their affiliations?

allsmiley2 · Answer

tell him to invest his own $.investing $ in the stocks is a crapshoot even the big players are having difficulty predicting this market.don&#x27;t trust anyone with your hard earned $.

Rockingsnip · Answer

If he is good as he says he is, why does he need to manage your money?  You are right, what does he have to lose.  If he makes you money, he makes the 7.5 percent commish from you.  If he loses your money, when you go to recoup your (guaranteed) principle lost he tells you to get lost.  Taking a free shot with your money!!

Stock advisor trying to defraud me.

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